How many times have you heard that advice as stocks are plunging?
I don’t know about you, but it’s easier said than done.
But there’s one group of investors who charge in to buy when stocks are selling off: the corporate insiders.
How do they do it?
They have 2 key advantages over you and me that provide them the edge during uncertain times. If you follow their lead, you can have that edge too.
Two Key Insider Advantages
1) Key Advantage #1: Insiders Know Their Business
Everyone knows that information is power.
Who knows more than those who are actually running the company?
The corporate insiders, including the CEO, CFO, General Counsels and even the Head of Human Resources, know who is getting hired or fired. They know that last month was a record month for sales and that there is a new factory that is opening in China which hasn’t been announced publicly yet.
They know when their business is booming.
Even better, they can actually purchase their company’s stock, knowing all this information, and it’s perfectly legal.
When corporate insiders get excited about their company’s prospects, you should too.
2) Key Advantage #2: Insiders Know When to Buy
Insiders don’t buy their own shares willy-nilly. As a stock rallies, insiders are likely to stay on the sidelines because their stock is no longer cheap.
Insiders like bargains just like the rest of us.
That’s why during this recent coronavirus bull market, the insiders went quiet. Just like you and I, the insider doesn’t want to buy an overpriced stock.
But when the company stock sells off, especially in a short period of time, the insider sees it as an opportunity. The insiders want a deal.
In 2022, stocks have sold off and many are down over 20%, or more, over the past few months. There are a lot of stocks suddenly on sale for the first time in 2 years.
Many companies are now trading with single digit P/Es and PEGs under 1.0, which indicate strong growth.
They are deals.
Continued . . .
------------------------------------------------------------------------------------------------------
Zacks Admits: "These Insiders Know More Than We Do"
Something’s up at several companies that already showed strong Zacks Rank fundamentals. Principal Officers reported to the SEC (as required by law) that they put up their own money to purchase shares of their own stocks.
As legendary investor Peter Lynch pointed out years ago, there’s only one reason why those insiders would do that: They expect their stocks to go up in price.
They know something we don’t. An expected contract? A product breakthrough? A planned merger? A brewing acquisition? Using our proprietary strategy, we find the soundest of these insider plays, and are now opening up our recommendations to public view – but only until Sunday, February 27.
See Zacks’ selected insider trades now >>
------------------------------------------------------------------------------------------------------
Insiders Are Buying Again in 2022
It’s not surprising, then, that after a company reports earnings, some corporate insiders are stepping in to buy their shares on the cheap.
As we’ve seen, the insiders like to buy when there are dramatic, quick sell offs. When everyone else is selling, they see a bargain. Remember, they have knowledge of what is going on inside the company so they are more optimistic than the rest of us.
They know, based on sales, hiring and expansion plans, that business is simply not that gloomy.
In 2022, even some of the FANGMAN stock insiders have jumped in to buy, which rarely happens as they already have millions of shares. Netflix’s CEO Reed Hastings recently bought $20 million in stock as Netflix shares took a dive after earnings.
That’s a buy that is made when the insider thinks the shares are over sold.
Are you ready to follow their lead?
Where to Find the Best Insider Buys
Anyone can go on the SEC website and get the insider trading information, but it’s time-consuming to search by individual companies, especially now that they’ve revamped the SEC website and made it even less user-friendly.
Some investment firms collect the insider buying data and can provide it to you as a daily list. Have you ever seen one of those lists? The sheer number of companies can be overwhelming.
And those lists don’t usually separate the insiders who are buying at the highs.
Even if you got a list of the insiders who are getting in at the highs and those who are buying the deals, how would you narrow it down to the stocks that are truly worth buying? If I’m going to buy when the insiders are buying, I want to buy only their top picks.
To identify the most promising signals, Zacks' research team developed a strategy that monitors selected insider buying activity at companies that already show strong earnings and valuations.
Only 7 to 10 stocks meet our demanding criteria at any given time.
We invite you to look into our Insider Trader portfolio now.
Bonus: Just for exploring our insider stocks, you can download Zacks' Special Report, 5 Stocks Set to Double, free of charge. These 5 long-term buy-and-holds balance our more active Insider Trader moves. Each is the #1 favorite of a Zacks expert for its potential to jump +100% or more over the next year.
Previous editions of this report gave investors a chance at +175.9%, +498.3%, even +673.0% gains.¹
Important note: Access to the Insider Trader portfolio and Special Report is limited. This opportunity ends midnight Sunday, February 27.
See our insider trades and download 5 Stocks Set to Double now >>
Best,
Tracey Ryniec
Editor of Insider Trader
Tracey Ryniec, Zacks' insider and value stock strategist, is Editor in Charge of the Insider Trader portfolio.
¹ The results listed above are not (or may not be) representative of the performance of all selections made by Zacks Investment Research's newsletter editors and may represent the partial close of a position.
Image: Bigstock
"Buy when everyone is selling"
How many times have you heard that advice as stocks are plunging?
I don’t know about you, but it’s easier said than done.
But there’s one group of investors who charge in to buy when stocks are selling off: the corporate insiders.
How do they do it?
They have 2 key advantages over you and me that provide them the edge during uncertain times. If you follow their lead, you can have that edge too.
Two Key Insider Advantages
1) Key Advantage #1: Insiders Know Their Business
Everyone knows that information is power.
Who knows more than those who are actually running the company?
The corporate insiders, including the CEO, CFO, General Counsels and even the Head of Human Resources, know who is getting hired or fired. They know that last month was a record month for sales and that there is a new factory that is opening in China which hasn’t been announced publicly yet.
They know when their business is booming.
Even better, they can actually purchase their company’s stock, knowing all this information, and it’s perfectly legal.
When corporate insiders get excited about their company’s prospects, you should too.
2) Key Advantage #2: Insiders Know When to Buy
Insiders don’t buy their own shares willy-nilly. As a stock rallies, insiders are likely to stay on the sidelines because their stock is no longer cheap.
Insiders like bargains just like the rest of us.
That’s why during this recent coronavirus bull market, the insiders went quiet. Just like you and I, the insider doesn’t want to buy an overpriced stock.
But when the company stock sells off, especially in a short period of time, the insider sees it as an opportunity. The insiders want a deal.
In 2022, stocks have sold off and many are down over 20%, or more, over the past few months. There are a lot of stocks suddenly on sale for the first time in 2 years.
Many companies are now trading with single digit P/Es and PEGs under 1.0, which indicate strong growth.
They are deals.
Continued . . .
------------------------------------------------------------------------------------------------------
Zacks Admits: "These Insiders Know More Than We Do"
Something’s up at several companies that already showed strong Zacks Rank fundamentals. Principal Officers reported to the SEC (as required by law) that they put up their own money to purchase shares of their own stocks.
As legendary investor Peter Lynch pointed out years ago, there’s only one reason why those insiders would do that: They expect their stocks to go up in price.
They know something we don’t. An expected contract? A product breakthrough? A planned merger? A brewing acquisition? Using our proprietary strategy, we find the soundest of these insider plays, and are now opening up our recommendations to public view – but only until Sunday, February 27.
See Zacks’ selected insider trades now >>
------------------------------------------------------------------------------------------------------
Insiders Are Buying Again in 2022
It’s not surprising, then, that after a company reports earnings, some corporate insiders are stepping in to buy their shares on the cheap.
As we’ve seen, the insiders like to buy when there are dramatic, quick sell offs. When everyone else is selling, they see a bargain. Remember, they have knowledge of what is going on inside the company so they are more optimistic than the rest of us.
They know, based on sales, hiring and expansion plans, that business is simply not that gloomy.
In 2022, even some of the FANGMAN stock insiders have jumped in to buy, which rarely happens as they already have millions of shares. Netflix’s CEO Reed Hastings recently bought $20 million in stock as Netflix shares took a dive after earnings.
That’s a buy that is made when the insider thinks the shares are over sold.
Are you ready to follow their lead?
Where to Find the Best Insider Buys
Anyone can go on the SEC website and get the insider trading information, but it’s time-consuming to search by individual companies, especially now that they’ve revamped the SEC website and made it even less user-friendly.
Some investment firms collect the insider buying data and can provide it to you as a daily list. Have you ever seen one of those lists? The sheer number of companies can be overwhelming.
And those lists don’t usually separate the insiders who are buying at the highs.
Even if you got a list of the insiders who are getting in at the highs and those who are buying the deals, how would you narrow it down to the stocks that are truly worth buying? If I’m going to buy when the insiders are buying, I want to buy only their top picks.
To identify the most promising signals, Zacks' research team developed a strategy that monitors selected insider buying activity at companies that already show strong earnings and valuations.
Only 7 to 10 stocks meet our demanding criteria at any given time.
We invite you to look into our Insider Trader portfolio now.
Bonus: Just for exploring our insider stocks, you can download Zacks' Special Report, 5 Stocks Set to Double, free of charge. These 5 long-term buy-and-holds balance our more active Insider Trader moves. Each is the #1 favorite of a Zacks expert for its potential to jump +100% or more over the next year.
Previous editions of this report gave investors a chance at +175.9%, +498.3%, even +673.0% gains.¹
Important note: Access to the Insider Trader portfolio and Special Report is limited. This opportunity ends midnight Sunday, February 27.
See our insider trades and download 5 Stocks Set to Double now >>
Best,
Tracey Ryniec
Editor of Insider Trader
Tracey Ryniec, Zacks' insider and value stock strategist, is Editor in Charge of the Insider Trader portfolio.
¹ The results listed above are not (or may not be) representative of the performance of all selections made by Zacks Investment Research's newsletter editors and may represent the partial close of a position.